First time parent (or will be if all goes as planned). My wife and I are in good financial standing but holy shit I didn't realize how much daycare costs, I have a feeling that plus the kid will wipe out what we save each month. Right now I have three high level financial goals:
1) Save as much as possible for retirement
2) Sock money away for down payment on home
3) Figure out how to do above two with newborn on the way
I live in a high cost area so main expenses are:
Rent (750 sq feet 1Br, not moving due to location, for now): $2500
Daycare (est): $2250
Groceries: $500 (We cook well)
Fun (going out, travel, staying sane): $600
Various insurance (car, term, std, etc): $450
Utils: $250
Public Trans to/from work: $200
Our financial details:
Take home income per month (after tax/insurance/retirement, etc): $9200
401k per month: 1500
Savings per month: 3600
We have no debt, we have a ~3 month emergency fund, max out our ira's etc. I know we are in a good place and I probably shouldn't be complaining, but that 3600 per month towards savings will be wiped out when we have a kid (I'm guessing) and owning a home is important to us, and very important to my wife.
Right now we have about 75k liquid but will be looking at homes in the 500-1m range so stocking away that money is vital to reaching that 20% goal.
I know one option is that either of us can not work, but the opportunity cost of doing so would most likely be more detrimental than just sucking it up and paying the $2500 for daycare.
TLDR: In good financial place but wondering how to adjust my investment/savings allocation to pay for first child and save up 20% for a home.
Submitted January 15, 2017 at 10:52AM by sfworkhandle http://ift.tt/2izAGkO
